How To Negotiate a Win-Win Job Offer
It feels like you’ve been looking forever, and you finally have a job interview that you think will lead to an employment offer. But what are the best ways to negotiate the fine points? Can you even negotiate, and if so, is it better to do it before or after you accept?
Read on to get some valuable tips to engage in job offer negotiations. We will focus on preparation, the steps to follow, the parts of your offer that may be up for negotiation, and tips for responding to multiple offers.
Preparation for Strong Job Offer Negotiations
When the time comes to discuss the fine details of your job offer, you don’t want to go in unprepared.
You can’t just decide that you want more money or better benefits, and you certainly can’t demand changes to your offer.
Instead, it is best to take time to gather supporting facts and consider the following points.
1. Is There an Opportunity and Room for Negotiations?
Find out whether the offer is even negotiable. For example, suppose the job is with a state or federal agency, a municipality, or a union.
In that case, the fine details are probably set in stone. Such positions often use a step or grade system for figuring salary and benefits, and advancement is strictly controlled.
If there isn’t an opportunity for negotiation, then there is no use moving on. Either you take the offer as is or thank them and move on.
2. Prepare mentally
You need to look at the situation in a favorable manner. You are not going into battle. Instead, you want a win-win situation, something good for you and for the company.
If you negotiate a job offer that’s entirely in your favor, it could come back to haunt you. The better your deal, the more you’ll be expected to perform, and you are under the radar. Whereas going for the win-win will make you look favorable and may result in an overall better outcome.
3. Determine the Going Rate for the Position
Determine the going rate for someone with comparable experience in the same type of position in your area.
It is unrealistic to expect a high salary in an industry with a low average salary.
4. Understand the Person You’re Negotiating With
Find out as much as you can about the people hiring and interviewing.
For example:
- Does the person have a reputation for being tough, or are they lenient?
What aspects are they concentrating on?
- Is there an emphasis on job performance?
- Are they worried about certification?
- Are they concerned about employee retention?
If education is important to them, concentrate on your degrees or continuing education.
If they are concerned about job performance, make any performance-based awards or commendations stand out.
It’s also a good idea to highlight your accomplishments and contributions in previous jobs. In addition to your devotion to your employers.
5. Know What You Want Before Negotiating
When you go into negotiations, you have to know and articulate exactly what you want.
So, whether it’s a child care allowance or a higher salary, be specific about your requirements.
Determine the minimum salary you will accept, which is your starting point. Negotiate up, but don’t take less than your minimum.
6. Set Realistic Expectations and Believe You’re Worth It
First, are your requests reasonable? Can you realistically ask for the things on your list, and can you expect the employer to give you what you want?
Second, do you believe that you deserve what you’re asking for? If you can prove that your education and experience are worth more than what is on the table and you stand firm, it lets the employer know that you’re not wavering.
7. Examine the Offer as a Whole.
Take a look at the whole package. It could be close to home, with flexible hours, or with a company where you can excel, for example. If everything is perfect except for the salary, you are dissatisfied with the overall package.
Making a big deal about a lower pay rate when the job is only 35 hours a week instead of 40 is focusing on the wrong things.
You may miss out on additional bonuses and a pleasant work environment if you focus solely on compensation or benefits.
8. Selecting the Right Tone for the Situation
You want to be professional yet approachable. You don’t want to be demanding, and you want what’s good for the company and what’s good for you.
- Phrases like “I am excited for the opportunity to work in this company” and add value to your team. Shows you’re a team player.
- For example, if you want to get the point across, you can back it up with data. So a phrase such as, “Based on my research…” would be acceptable.
- If you want to engage in a negotiation, you can ask, “Is that issue flexible?”
- If you want to counter, you could say something like, “I would be more comfortable if…”
- When negotiating a final point, you could say something like, “If you can do that, I’m on board.”
You want to be accurate, knowledgeable, reasonable, and pleasant at the same time.
9. Bring Everything Up at Once
Tell the employer upfront that you would like to negotiate specific aspects of the offer.
Agreeing on a salary, then moving on to the next point, and so on, may irritate your employer because it implies you’re always looking for more.
When you state that you want to negotiate your salary and working hours, it is obvious the negotiations are finished once these issues are agreed upon.
10. Counteroffer
During a negotiation, you are not required to accept the first offer. A low offer is first made with the expectation of a counter offer.
This usually results in an agreement halfway between the first offer, which is low, and the second higher offer. For example, if you are offered 50K and you ask for 55K you will probably end up with $52,500.
More On Job Negotiations
So far we’ve covered some pointers and ideas on how to prepare for and perform your job offer negotiation.
In the following sections, we’ll go over a few things you might want to think about if you wish to extend your horizons.
Negotiating Salary With Multiple Job Offers
If you have more than one job offer, congratulations! You have a great resume, the necessary education, and you impressed multiple interviewers. Not only do you have several options to choose from, but you’re also in a great position to leverage all offers.
First, take a close look at all of your offers.
Which job would you choose if the salary, benefits, commute, and extras were all equal?
Then, approach that employer and tell them you are their first choice.
Say you got an offer with a better salary and benefits from another employer. You want to see if it’s possible to adjust the contract terms. Don’t demand – address it as a genuine question. If the employer really wants you, they should be willing to negotiate.
They might just offer you a better deal to avoid losing you to the competition.
Again, don’t demand or give an ultimatum. That is a surefire way to lose all the goodwill you’ve built up. Employers can be creative with benefits packages. Even if they can’t meet your salary needs, they might be able to compensate you in other ways.
At the same time, if you have a major sticking point in your offer, be sure to bring it up. Saying, “I want to take this job, but I have some reservations about X,” is a great way to open a discussion.
Be aware that sometimes there is no wiggle room. If that’s the case, you have to know what the best decision is for you. Taking a job offer because you’re desperate will usually end up in disaster.
Can You Lose The Job Offer By Negotiating?
A job offer is rarely rescinded just for negotiating especially if the employer is open to negotiations. However, employers can back out because of how you behave or what you reveal during the negotiations.
You’re an at-will employee in most states. Therefore, an employer has no legal obligation to hire you even though they have extended a job offer.
How Long Do Salary Negotiations Take?
The short answer is it depends. You may be able to complete the negotiations in 30 minutes which is much better than going back and forth, which may cause the employer to lose interest. The clearer you are about your requests and the more realistic they are the shorter the negotiation.
Even though the negotiations only take 30 minutes the final approval may take up to a week depending on who needs to approve it.
Dos, Don’ts, and Best Practices for Job Offer Negotiations
Kindness Is a Must
Remember that you will be working with these individuals, so be pleasant. From the beginning, think about working as a team and achieving win-win outcomes.
Focus on What You Can Do for the Company
Concentrate on what you can do for the organization and the added value you can offer to the team as a result of your previous work experience and work ethic rather than what you don’t have.
Be Realistic.
For instance, if the job offer is $50,000, you should counter it with a reasonable offer.
However, unless the position is new, the company’s salary is fixed. Furthermore, they may have other people that hold the same position.
As a result, if you have exceptional skills and experience, you may be able to negotiate a slight bump. Still, coming in with an 80K counteroffer for a 50K position would be unrealistic.
Identify Your Non-Negotiable Issues
Concentrate on the most important issues that are non-negotiable for you. For example, if your only available hours are 9-5, do not accept a position that is available from 2:00 pm to 10:30 pm.
Don’t Accept Verbal Agreements
Make sure everything is in writing. Rather than saying, “I need that in writing.” You can say something like, If you don’t mind, can I get that in writing for my records?
Don’t Push
Do not press the non-negotiables. The employer may have a good reason for the non-negotiable issues, and pressing on those issues can leave a bad impression.
Avoid Acceptance To Get the Deal
Accepting something you’re uncomfortable with and thinking, “I’ll get my foot in the door and negotiate later” is a bad idea. You may not have that option; instead, consider your offer to be a done deal, and if you’re satisfied with it, proceed. Otherwise, you might not be able to get what you want later on.
Sleep on It or Not
For me, I’d rather get it done and demonstrate that I’m ready to go. I had time to think about and consider the various outcomes prior to the offer.
In the eyes of an employer, the fact that you have to think about it indicates that you are not ready to go and considering something else.
If you have a reasonable offer and are ready to go, I would say something like, “That’s acceptable, and I’m eager to get started.”
Issues You May Need to Negotiate
Some issues in your offer may be negotiable, which depends on your employer and your negotiating power. Here are some suggestions for approaching each item.
Vacation
The best starting place for getting more vacation time is to compare your offer with what you received at your last job. But vacation time is getting a shake-up, so hopefully, you won’t need to negotiate much longer.
Hours
If your workplace offers flexible scheduling, then this won’t be difficult at all. If it doesn’t, you still might be able to negotiate. It never hurts to ask if you can work four 10-hour days, flex your hours to be home for your kids, or miss the worst rush hour. Post-COVID, you might even be able to ask for a hybrid schedule! If your position is shift work, unfortunately, flexibility with hours won’t be possible.
Travel
How often and where are the most common travel questions. Suppose travel is a large portion of your work. In that case, you may be able to negotiate additional days off to compensate for off-the-clock travel, a higher per diem, and other perks.
Benefits
Is there any leeway when it comes to health insurance? Do you have a number of options? What about 401(k) contributions? Are there any benefits available to you, such as a wellness program or employee assistance programs?
Child care
Does your employer offer childcare reimbursement or on-site childcare? If not, is it something you can ask for? How about a pre-tax FSA that you can use for care expenses?
After-Hours Work
Will you be expected to work outside of business hours, for instance, on-call hours or as needed for a project? Will you be monetarily compensated with overtime pay, or will you be given additional time off?
Building a Team
How much authority will you have over your team? Are you able to function on your own, or will a supervisor have oversight? Can you manage problems and conflict within the team on your own?
The extension of authority
How far does your authority reach? Do you have free reign over your budget, or do you need approval? How much management is under your control? What about hiring and firing?
Conclusion
There are numerous elements to consider while negotiating a job offer.
While some companies are willing to negotiate, unionized workplaces, municipalities, and businesses that operate on a shift schedule are less accommodating.
When it comes time to sign your contract, you’ll be certain that you’ve negotiated a fantastic deal with your ideal employer.